Biotech Values

[DewDiligence]

Re: FMI Valuation

My model in #msg-105563008 did not include ex-US business, so if Roche can generate meaningful international revenue, the bottom-line figure goes up accordingly.

In other respects, however, the model need not be changed, IMO. Roche’s involvement won’t generate higher US test volume or faster US reimbursement.

Roche could even have a slight negative pull on FMI’s revenue from other drug/biotech companies, but this effect is probably too small to worry about.

For the purposes of the model, the additional shares issued to Roche and the new cash on hand basically offset one another.